Median monthly pay for February 2024 increased by 5.5% compared to the same period last year, to an estimated at £2,331, according to data from the Office for National Statistics (ONS).
Its labour market figures published on 12 March revealed that regular pay growth fell to 6.1% year-on-year in the three months to January from 6.2% in the previous period.
Annual growth in total earnings including bonuses was 5.6% in November 2023 to January 2024, and annual growth in average regular earnings excluding bonuses was 6.1%.
In real terms that have been adjusted for inflation, annual growth for total pay rose on the year by 1.4% in November 2023 to January 2024, and for regular pay rose on the year by 1.8%.
ONS’ report highlighted that the growth rate of median pay increased in line with pre-pandemic trends throughout 2022, with the trend continuing since the start of 2023, but some months showed much higher growth rates than others.
Liz McKeown, director of economic statistics at the ONS, said: “Recent trends in the jobs market are continuing with earnings, in cash terms, growing more slowly than recently but, thanks to lower inflation, real terms pay continues to increase. Over the last year, there was little change in the proportions of people who are employed, unemployed or neither working nor looking for work, though the overall number of people in work is still rising.”
Jack Kennedy, senior economist at Indeed, added: “The ONS figures paint a familiar picture of further gradual softening in the labour market and easing pay pressures, but it remains an incremental process. Posted wage growth remains particularly strong in lower-paid occupations like childcare, cleaning, retail and hospitality, running in the 7-9% range. Though the labour market has cooled, hiring challenges persist in these areas and continue to support pay increases. The latest round of supermarket wage hikes is the most recent example of this, in advance of a 9.8% rise in the national living wage coming into effect in April.”